Have I done the right thing?

Have I done the right thing?

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I recently took on a new client, micro entity limited company. One man band.

I found multiple errors, some material (although arguably not "fundamental").  The main ones were duplicating dividends paid reported and excluding the DLA entirely.

The previous accountant says they have lost all their records and it was impossible to reconcile client's accounting information with the accounts produced each year since incorporation.

Short of reconstructing the stat accounts for the last 5 years and due to the complete lack of information around where each year's figures in the accounts came from, I decided that the best option was to adjust the opening retained earnings accordingly by establishing what the opening balance sheet should have looked like.   This decision was taken in light of reading IAS8.44. Micro entity accounts were submitted and I included a disclosure about the treatment and nature of the most significant prior period errors found.

However, if it is impracticable to determine the period-specific effects of an error on comparative information for one or more prior periods presented, the entity must restate the opening balances of assets, liabilities, and equity for the earliest period for which retrospective restatement is practicable (which may be the current period). [IAS 8.44]
However, if it is impracticable to determine the period-specific effects of an error on comparative information for one or more prior periods presented, the entity must restate the opening balances of assets, liabilities, and equity for the earliest period for which retrospective restatement is practicable (which may be the current period). [IAS 8.44]

Now I am faced with submitting  accounts and CT600 to HMRC and I have only ever done this with the HMRC software.  It says the software cannot be used for prior period errors but as I have adjusted in the current year  does anyone know whether I will be able to use it afterall?

Also, finally, I understand that these adjustments would ideally be taxed in the tax year which they relate to but instead there is a net adjustment to the current year.  Will this be acceptable to HMRC?

Would I be better off trying to restate prior year and submit amended accounts to Co Hse?

Any thoughts gratefully received.

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